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The Blistering Recovery Continues: Week After Macy's, JCPenney Fires 2000, Closes 33 Stores
A week ago, Macy's fired 2500 and announced the closure of five stores. Moments ago, the company which we have been warning since late 2012 is a melting ice cube that ends in bankruptcy, JCPenney, which a week ago provided the following glib summary "JCPenney reported today that the Company is pleased with its performance for the holiday period", turns out was merely joking and just echoed the Macy's sentiment, announcing the termination of some 2,000 jobs and the closure of 33 stores.
JCPenney today announced that as part of its turnaround efforts, the Company will be closing 33 underperforming stores across the country in order to focus its resources on the Company`s highest potential growth opportunities.
These actions are expected to result in an annual cost savings of approximately $65 million, beginning in 2014. In connection with this initiative, the Company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.
Remaining inventory in the affected stores will be sold over the next several months, with final closings expected to be complete by early May. The closings will result in the elimination of approximately 2,000 positions. Eligible associates who do not remain with the Company will receive separation benefits packages. Meanwhile, the Company is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," said Myron E. (Mike) Ullman, III, chief executive officer of JCPenney. "While it`s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success."
What can one say but: this is just the kind of recovery that justifies an S&P500 at all time highs.
Investors initially cheered... but now not so much...
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LOLCOVERY
next up ..Sears
Why has WMT been fading during this recent run up in the "market"
I hope JCpenny will have a closed down sale soon.I need battery cell for my flash light.
Didn't you mean FleshLight?
Even if shutting some of J.C. Penney’s under-performing outlets might seem like a no-brainer, the troubled company has an extra obstacle given most of its stores are within malls.
“Closing stores is probably necessary, but there’s a trap here,” said Mark Cohen, a professor at Columbia Business School and the former CEO of Sears Canada. “In malls, there are restrictive operating covenants. Retailers can’t just decide to close stores.”
These covenants can tie a store down for 20 to 25 years, particularly in regional malls where many J.C. Penney outlets operate. Breaking these agreements can result in multimillion-dollar penalties in some cases, with anchor stores like J.C. Penney (or Macy’s, or Bloomingdale’s) hit hardest if they try to renege.
http://www.forbes.com/sites/clareoconnor/2013/04/12/how-to-save-j-c-penn...
JCP closing 33 stores...
No problemo... ODumbo will just create 33 more Promise Zones!
My JCP short looking better and better everyday!
coach is closing 20 stores next month.
Damn, nice 'sales rack' there, Four Chan!
I can't understand why it is surprising that the 'big box' retailers are all closing up. They are forced to sell the same low-quality Chinese crap (well, they weren't FORCED; they BEGGED for it in their purchasing departments, and they GOT what they asked for) as Walmart, Sam's Club, The Dollar Stores (et.al), but they forgot that they can't keep charging the same prices as high-quality merchandise made in other nations (try finding an American-made washing machine, television, or tool, much less shoes or shirts or plates, or glasses or cups or silverware or pillows or blankets or...).
The only thing that surprises ME PERSONALLY is that it has taken SO LONG.
R.I.P., American retailers. The NEW BOSS is in town, and he is NOT a kind one.
I was wondering why the hard plastic and large spring. The pain the last three years has been intense.
Maybe 'cause when you walk in their Supestores, noone is there shopping. It has been real quiet on Friday's for about 9 months.
They didn't do anything to attract customers back into their store. Their prices are all over the map from 250% of fair value to deep discounts. I went into their store after Christmas and looked at shoes. I found the exact item three stores down for half. Why would I go back, when I have to question if I paid the right price?
Maybe it's because of this chart:
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=wmt&time=20&startdate=1%2F4%2F1999&enddate=7%2F31%2F2013&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=1&maval=21%2C50%2C100%2C200&uf=7168&lf=268435456&lf2=16777216&lf3=33554432&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=15&x=22&y=16
It's been a fairly boring stock for . . . decades?
['Except for those who were reinvesting dividends:
http://performance.morningstar.com/stock/performance-return.action?t=WMT®ion=usa&culture=en-US&ownerCountry=USA
(Click "expanded view" "compare" and add other stocks to get a better picture) . . . And, even those who reinvested dividends in WMT do not appear to have kept up with the market (as represented by the S&P 500) if one merely bought SPY and reinvested the dividends automatically (over longer periods of time), as most if not all brokers will let you do if you ask them to.
This makes me wonder, if WMT is so evil, how come their share holders don't make more money?]
JCPenney, which a week ago provided the following glib summary "JCPenney reported today that the Company is pleased with its performance for the holiday period", turns out was merely joking and just echoed the Macy's sentiment, announcing the termination of some 2,000 jobs and the closure of 33 stores.
Morbid sense of humor, but I suspect it's just due to the weather, yes?
You read my mind. That was exactly what I was thinking regarding my 3 whole shares of SHLD. 'What an effing dog. [But, it's up almost 3% today; maybe its time to sell at almost the all time lows!
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=&symb=shld&time=20&startdate=1%2F4%2F1999&enddate=7%2F31%2F2013&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=1&maval=21%2C50%2C100%2C200&uf=7168&lf=268435456&lf2=16777216&lf3=33554432&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=15&x=0&y=0]
And it's gone!
http://www.reuters.com/article/2014/01/15/sears-canada-idUSL2N0KP2222014...
The page?
Green chutes...... 5 years on. F'n joke these central planners are.
Oh come on, it's the weather and restructuring so the poor employees can get ObieNomics retraining to be productive government employees
Just in fucking time for a Fed Tapertantrum
Booyah motherfuckers!
PS I was at Costco today picking up my life and the dude in front of me (Humorless fuck, I must say. Didn't enjoy my humming of Dixie) was buying one and one one thing only. A copy of Jim Cramer's book on how to "Get Rich Carefully."
Huh....
Bulk sales at Costco....
I was gonna ask him if he was planning on selling his daughters on e-Bay or sumptin...
But thought it would not help the poor fellow.
Or me....
We have a saying in poker: "Don't tap on the aquarium"
Darwin was right. Let nature figure it out.
Picking up your life or picking up your Wife?
Cramer, how to "Get Fleeced Carefully", just buy and hold, right Jim?
"Hope springs eternal" as the saying goes.
Bubble Part II swelling larger than Bubble I.
"If you have a daughter of marriageable age, you should place her in an upstairs window where she can be seen reading or playing a musical instrument. She is a kind of merchandise."
from the Kama Sutra.
Couldn't make this shit up;)
Fucking India.
Classic literature,
and funny as all hell. Definitely not PC.
@kaiser
The Kama Sutra or Jim Cramers book?
Actually, Knukles, next time give them several bars of, "Rose of Alabama." a poignant tune of Antebellum America. Wonderful melody.
JC Penney has nothing to do with any evidence of recovery. They're just the next Sears.....
http://www.youtube.com/watch?v=5087isMudEs
...33 stores closing...
Bullish for the Dollar Store and Overstock. There'll be tons of crap that needs to be dumped....
Will anybody notice?
Or care?
Sprucing up before the BK.......
I see they also put the employees back on commission again today- there ya go, doesn't reek of desperation at all......
"Toby, your new salary is $2/hr plus commission- now get out there and sell!"
Shaniqua will hit the exit door running.......
Or they are getting lean and mean and going up for sale. Been part of that song and dance before.
"Did anyone help you today?" My answer is always an unequivocal 'No' unless the chick is way hot or something. Making eye contact with me when I walk in the store is not 'being helped.'
Economic renaissance bitchez! Maybe Zero should consider stop giving speeches. It seems every time he opens his fat trap something bad happens. Ahhhhhh who am I kidding? Expecting Zero to stop talking is like expecting a banker to do the right thing.
Obummer will never take responsibility for any of the things that have happened under his watch, hell He's still in campaign mode.
Just look at the story behind this one in the blog roll, the market is screaming ever higher.
Economic Renaissance my arse, right?
A greenie for the good doctor...
DaddyO
Useless workers!
dammit janet, we need to print moar.
Fifty-million unemployed?
Build pyramids!
A portion of pyramid workers daily wage was....wait for it.....2 gallons of beer.
http://www.youtube.com/watch?v=aV36ytSgC3o
And room and board. So.... 2 gallons pre or post tax? 2 gallons is about a case of Bud, so, you might be better off as a pyramid worker.
"Build pyramids!"
LOL. Next build Great Walls! (I can think of several places for Great Walls... around DC; somewhere near San Luis Obispo--from the ocean to Nevada; around Utah and adjacent outlying Mormon demographic areas (with sovereignty for those within); and around Texas or along the northern borders of OK, AR, TN, and VA, unless MO, KY, WV, MD, and DE wish to be included, (also granting belated indepedence to that rightful nation). (Good fucking riddance!) >:-D
Another thought.. America has 50+ million bums on food stamp and other welfares, and China has 50 million too many men... It's a reality TV Survivor series of bayonet melee until one team outlasts the other! I'd watch, maybe even PPV (if I had bank card, ha!).
Planet Schmanet, Janet
You'd better wise up, Janet Weiss
Your apple pie don't taste too nice...
/frank n furter
DiLithium Fiat, Mr. Yellen, we need moar DiLithium Fiat...
Aye Cap'n, I'ma given her all she'll take, anymore and she'll blow us into the Bernanke/Greenspan Hyper-Inflation Zone like a coronal mass ejection...
Just give me moar DiLithium Fiat and let me worry about the blast Mr. Yellen...
DaddyO
"once again LT Ohura is on the Captains log
life is good.
Out
I dunna ken wha' a DiLithium Fiat is, laddie! Fiats run on Chryslers...if they run at all... (I canna change the laws of physics! The damned contraptions just, WON'T, RUN!)
Yes, thank you! These are the kind of laughs I used to count on opening up ZH every morning--or afternoon, as my 'mornings' may be.
Somewhere, somehow, someone(s) will say this is bullish.
Well, that is what the ever-astute JCPenney management is saying. Now they can focus on their high growth potential sectors, you see. Plus the "strategic priorities" thing. Sounds bullish to me.
Fewer stores, fewer customers, less leverage with suppliers; HAS to be bullish.
When they are down to one store that is a sentimental museum of retail they'll do great.
Woolworth's, anyone?
Best Buy next.
On the flip side, Woolworths is going fabulously well in Australia. Although, it helps when there's only three major supermarkets in the country (Woolworths, Coles and Aldi), with independants closing down, or barely scraping by.
I'm saying it right here, right now. This is bullish because all these people will be on unemployment, and Nancy the fucking genious Pelosi says that's good for the economy. BTFD!
The tally from the closing of Sears/Kmart, Best Buy, Barnes & Noble, Dicks's Sporting Goods, American Eagle, The GAP, TJX, Abercrombie & Fitch, Radio Shack, Rite-Aid, Lord & Taylor, Nordstrom's, Saks, Bed Bath & Beyond, Ace, a multitude of grocery stores, etc., etc., etc. hasn't even begun to accrue yet.
But it's coming, bitchez!
Nahhh. They'll retrofit the buildings and soon after you will see plenty of Asian nail parlors and Mexican food restaurants..........that's the only boom I know of going around.......
Taco Bell.....Yeah !!!!
Money laundering at its finest. Better Call Saul!
Just flush it already, quit toying with me!
Just drove by a Blockbuster. It's closing but thankfully under the "Store Closing" sign it said this store only.
Phew!!!! I was worried as well, where else can a guy rent a movie when he......oh wait.
I forgot this wasn't 1990
dt
It is getting bleak out there. I'm in a uppity section of town and more people dressed nicely are showing up begging and going through the trash cans.
When people are barely surviving it barely takes an extra weight to drive them to the streets.
We are going down.
Times like these brings the Totus out lying like a mofo; as he did yesterday.
Armani suits gone dompster diving? Say it ain't so!
I guess it comes with the "uppity" territory. You're such a snob. Even your beggars are wearing D&G. Who is shining their shoes? The unemployed engineers from the not-so-uppity parts of town?
Long term unemployment. Hire them back next November. Rinse and Repeat.
Time to update the lyrics for their annoying 2013 "Deck the Halls" holiday ad:
Doh, doh, doh, doh, doh...
lop lop, lop lop.
Are you seriously basing your statement about the economic recovery on the success/failure of JC Penney? Do you actually know anyone who still shops there?
Economic reality will eventually slap the market in the face like a large wet dildo.
When it does... bye bye bitches.
If the market gets slapped in the face with a large wet dildo, it'll be madder than a pit-bull chewing a wasp.
The 2014 "Going Out of Business" sales have just started. More coming to a mall near you!
2014 is going to be GREAT for going out of business sales..
jcp deserves to die after being raped by the former management team from Apple. They did soooooo much damage and spent money like it was silicon valley happy times all over again. I just started comaring all the shit the poor employees had to endure from these fools, from the return policy idiocy to trying to make a sow's ear (jcp) into a silk ear (nordstrom lite) by rearranging the fucking jeans almost every time some fool wanted to change how they were posed. The furniture revamp was a fucking disaster. Dress your daughter like a whore was a disaster from Betsey Johnson and others.
Liberal Ron Johnson was the worst CEO ever. A fucking arrogant, ignorant prick. You have to feel sorry for all those JC Penney workers that got fired during the last 2 years. It could have easily been avoided.
you do have to give the man props for hoodwinking the board for $54 million and an unspecified golden parachute. (sarc)
There are good CEOs? They all seem like rapists to me.
GREEN SHOOTS,
2014 will be the mother of all lay offs since 2009! Mark my word!
You are so right. It might be the mother and the grandmother.
JCP is nowhere near as profitable as PCP.
Sears is next. The days of gramps going into Sears Automotive to buy a tool seem like a relic of the distant past. Going into an Advance Auto these days resembles a Guatamalan flea market, and yes, there's gramps, in line, wondering if the parts guy speaks English. We are the land of the 20-year old Toyota Corolla here in Northern Virginia, complete with Obama stickers and drivers who wipe their noses with their sleaves.... Sheesh
i call Kansas City "havana" because of all the 20 year plus cars driven there.
Wait, you get sleaves? High livin' there.
Hey if they were 30 year old cars you might be able to fix them yourself just like gramps did...but they'd be rolling death traps...tradeoffs.
Fantastic for the 2000 fired employees....free unemployment payments and free healthcare...........
What a country!............where do I sign?.............
Well they have to get all the crap out of the malls so they can be used as FEMA camps...8^)
JCP should be used as a classic case of what happens when you do everything in your power to alienate your customer base and replce them with fickle youngsters and assorted alternative lifestyle creatures.
Let. It. Begin.
Where can I get a list of these stores? They have awesome going out of business sales, especially in the final wind down phase.
Go to the jcp website, underinvestors.
The fact remains : The malls are anchored by the big box stores......
If the mall dies (it will) then all the hair salons and coffee shops and boutiques go too...
With all the plywood "For lease" and "Coming soon" posters inside the mall,the retailers will start an unofficial Rent boycott movement,pressuring the mall owner to decrease rents until foot traffic picks up (never...).
The Mall owner consortium share price drops.They try for a bailout......
I drive down to Portland once a month from Seattle to see local clients. I pass the 3 Rivers Mall in Longview WA. It's what I would call a 2-3rd tier mall, but good sized.
Last week when I drove by I noticed they were razing 2 of the wings that had been empty. This is the future I suspect. Now the malls (if they survive at all) are going to downsize in an attempt to appear a going concern instead of some ghost town with kids skateboarding in the parking lot.
Only top tier malls will survive the deluge.
http://www.bloomberg.com/video/sears-can-t-survive-as-a-retailer-davidow...
Get over it, economic indicators are completely irrelevant in central planning.
Central Planning make own economic! Whole purpose. Other wise economic become free and no need for Central Planner. Only through constantly central planning can central planner insure maximum income until early full disability retirement in Costa Rica.
So JCP hasn't been helpin the BDI much I take it?
I am a physicist and my company is in a medium part of houston, and half a block from me our blockbuster has closed, and across the street our randals grocery of several decades is closing in a month. Its pharmacy closed a month ago. Many of the stores around them are already empty. A few miles away a new discount Sams is opening with thin traffic. I am a business owner and over the years have kept an eye on local storefronts and related race, culture, and age demographics. I look at the people on the street locally and imagine the question 'would I hire that person?' If I would not want them then likely other employers would not as well, so their ability to earn and therefore to spend back into the local economy is low. In short, my 65 year old eyes see lower quality work candidates on a fundamental genetic, and work ethic level as compaired with a few decades ago. In order to see the reality of our future you have to ignore television, ploitical correctness, and anything coming from DC, and rely only on your eyes and the eyes of your friends who only rely on their eyes.
I agree. Did you know that 30% of today's teens are on one or more prescription medicines long term?
Also, one of the effects of fluoridated water is a lowering of intelligence. It also deforms collegen which is essential for joint and bone health.
The reason people look fundamentally lower quality than they did a few decades back is that they and we are not as healthy and vibrant as those earlier times. Look at photos from the 30's and 40's. Few people were fat. Today most people are.
When is the last time you saw a wasp-waisted woman? I remember them when I was a teen in the '60's. Women's waists are getting thicker now.
I did see one a few years back in a grocery strore. Turns out she was from Russia working here on a visa, not an American. Saw her again a little while later. Her wasp waste was gone.
Yes. I travel to Russia about once a year to lecture and for business. They still have such women.
I agree with you, but I go further and think that about 4 generations now have been size bread for welfare checks by both men and women that are successively dumber and unable to plan for the future. This dumbing down is at least partly on a genetic level. Watch the movie 'Idiotocracy'
http://www.youtube.com/watch?v=BBvIweCIgwk
Fewer employees/stores means less operating costs...therefore increased earnings for Q1. Ring out those last bonuses before going under. The "market" likes it.
You can keep your JCP if you like it...what's left of it.
The complete J.C. Penney drama which started already in February 2013 http://forum.prisonplanet.com/index.php?topic=242757.0